Ever wondered why do companies invest top dollar in HCM applications and then spend on maintaining them, what is the value it brings to an organization, why use it all?..
To tackle these questions and to understand why HCM, i.e. Human Capital Management applications, are basic blocks in the architecture of any organization’s IT landscape, let us look at the features that makes a HCM application what it is and how it empowers employees and HR personnel alike in an organization.
Ease of use: Feature rich and in some cases widget rich HCM systems come fitted with a simple user interface, imagine having to struggle to use and navigate through an application, no one wants that kind of negativity in their lives, the screens always meander towards simple, intuitive and an easy to use and navigate layout. The buzzword here is User Friendly.
Manage a global & dynamic workforce: Organizations are spread across continents with countries having varied tax regulations and rules. HCM systems provide features that support taxation, statutory deductions and year end processing of various countries. Also when employees get deputed and move on to foreign shores, a HCM system enables tracking such movements and related details.
Accommodate industry standard HR processes: Along with the obvious ability to hire employees into the organization, maintain their personal & employment data and record changes as applicable and then process termination on employee exit, HCM systems also enable calculation of periodic benefit deductions, calculation and payment of bimonthly/monthly salaries subject to the home country regulations, payouts of AdHoc bonuses. And employee data from the HCM system of an organization is published to other enterprise applications like Finance, Supply Chain Management etc.
Another group of HR processes that target employee talent management enable recording job related competencies of employees, detect gaps in the employee competency profile vis-à-vis the employee designation and track bridging of the gaps through a structured learning and certification path, HCM systems can also help map and track career plans for employees in an organization and if required create and monitor succession plans as well.
Employee work hours and In and Out times used for billing purposes can also be recorded, monitored and maintained in the HCM application.
Employees and their managers can work together on creating performance goals annually or bi-annually and track the progress and closure of the same with feedback and ratings as relevant.
Employees can also update changes in address, changes in martial changes, child birth/adoptions, view pay slips, view benefits offered by the organization and make choices and even see deductions as they happen, etc.
Anytime anywhere access: This happens to be a very important value-add, mobility is almost a way of life as evident in the past few years, people want the option to access data, approve requests and extract reports while on the go, so a HCM system is smartphone and tablet compatible has a definite edge in the market.
HR Analytics support: As your organization grows and accumulates data, analyzing this data to identify patterns and trends is an all-important activity, HCM systems provide text & chart based reports to support decision making and also ability to interface with external business intelligence tools if your organization uses them.